White House Encourages U.S. AI Companies to Partner with UAE for Competitive Edge Over China

The White House is reportedly pushing for U.S. artificial intelligence (AI) companies to form partnerships in the United Arab Emirates (UAE) in a bid to gain an edge over China in the race to develop new AI projects. According to sources cited in a Financial Times report, the move comes after Microsoft announced a $1.5 billion investment in G42, an AI company based in Abu Dhabi.

The discussions, facilitated by the American government, have involved key players such as Microsoft, Google, and OpenAI, with U.S. Commerce Secretary Gina Raimondo playing a significant role. The UAE’s strategic decision to focus on U.S. tech stems from its recognition of data as the new oil and the need to navigate between U.S. and Chinese tech concerns.

Approval of the Microsoft-G42 deal took months of negotiations due to national security considerations, highlighting the importance of AI investments in the region. Saudi Arabia’s establishment of a $40 billion AI investment fund underscores the potential for AI to reshape industries and drive economic growth in the Middle East.

As countries in the region vie for global AI leadership, successful AI development efforts could lead to a wave of innovation, new startups, and economic prosperity. The Middle East stands to capture a significant share of AI’s global benefits, with potential benefits estimated at around $320 billion by the end of the decade.